Trane Technologies plc (TT)
Debt-to-capital ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,318,100 | 4,317,100 | 4,316,200 | 3,978,700 | 3,977,900 | 4,476,300 | 4,476,600 | 4,481,800 | 3,788,300 | 3,787,500 | 3,786,700 | 4,492,600 | 4,491,700 | 4,490,700 | 4,489,800 | 4,496,300 | 4,496,500 | 4,494,200 | 4,618,200 | 4,624,800 |
| Total stockholders’ equity | US$ in thousands | 7,457,400 | 7,591,500 | 6,947,300 | 6,889,700 | 6,995,200 | 6,681,800 | 6,258,800 | 6,036,100 | 6,088,600 | 5,858,300 | 5,723,500 | 5,998,600 | 6,255,900 | 6,475,100 | 6,457,300 | 6,296,700 | 6,407,700 | 6,366,700 | 5,936,900 | 5,772,600 |
| Debt-to-capital ratio | 0.37 | 0.36 | 0.38 | 0.37 | 0.36 | 0.40 | 0.42 | 0.43 | 0.38 | 0.39 | 0.40 | 0.43 | 0.42 | 0.41 | 0.41 | 0.42 | 0.41 | 0.41 | 0.44 | 0.44 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,318,100K ÷ ($4,318,100K + $7,457,400K)
= 0.37
Trane Technologies plc's debt-to-capital ratio has shown some fluctuations over the examined period. The ratio stood at 0.44 at the beginning of the observation period and remained relatively stable until September 2020. Subsequently, it declined to 0.41 by the end of December 2020. From March 2021 to June 2022, the ratio fluctuated within the range of 0.41 to 0.43.
However, from June 2022 to December 2024, there was a gradual reduction in the debt-to-capital ratio. By the end of December 2024, the ratio had decreased to 0.37, indicating a decrease in the proportion of debt relative to the total capital employed by the company.
Overall, the trend in the debt-to-capital ratio for Trane Technologies plc suggests a gradual decrease in the leverage levels of the company over the analyzed period, which may indicate an improvement in the company's financial stability and reduced financial risk.